Smart Reasons to Get a Personal Loan

People apply for personal loans for many different reasons. We all too often hear about people facing financial hardship by borrowing more money than they can afford to repay. It is the responsibility of finance companies to lend responsibly. Instant Finance is a company that takes this responsibility seriously.

We love dealing with smart people applying for personal loans for smart reasons, and if you’re dealing with a responsible lender like Instant Finance, everyone ends up better off.

Here’s a few smart reasons why people get personal loans:

Debt consolidation

A common reason to apply for a personal loan is to consolidate debt. Having multiple loans as well as outstanding credit card debt can be overwhelming, and can often lead to financial hardship. Multiple loans will most likely have different balance amounts due, various repayment schedules and interest rates.

A personal loan can help by consolidating your debt into one easy to manage loan with one repayment schedule and a fixed interest rate.

To pay off your credit card

Credit card interest rates are often deceptively high. Even an unsecured loan which generally has quite high interest rates, can have similar or even lower interest rates than a credit card. Paying off a credit card with a personal loan can quite literally save you money but paying you card off without borrowing further money is even better, however, if you do have/use a credit card, take care to clear the balance every month to avid paying any interest at all.

To buy a vehicle

It’s often easier to negotiate a better price for a big-ticket item like a car if you’re paying cash. If you don’t have the cash at hand though, a personal loan is a good solution. Car dealers will often have special deals or extra goodies for cash-paying customers as well. You might even receive cash back, a year of car washes, or a set of new tyres!

Be smart about your provider

The smartest thing you can do when it comes to personal loans is to pick the right provider. Good providers will look after you, listen to your situation, and make judgements based on responsible lending. They won’t let you overextend your credit, and won’t be shy about declining a loan if they feel it’s too much for you in your immediate situation.

Look for a provider that values customer service and will nurture and help you if you fall behind, rather than immediately demand payment or repossession of goods. The right personal loan provider will be a good corporate citizen, and fully comply with the laws and guidelines around contract disclosure, responsible lending, and insurance. If you have a good history with such a provider, they’ll make provisions for emergency situations and try to help you out in a crisis.

Instant finance pride themselves on being great personal loan providers for kiwis for over 45 years. We aim to help New Zealanders with their financial decisions, and be responsible with our lending. If you want to be smart about getting a personal loan, give us a call on 0800 760 000.